What is the Atwell Suites Equipment Lessee's obligation regarding title documents for the equipment?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- TITLE TO THE EQUIPMENT. Title to the Equipment is, and will at all times remain, vested in Company. Equipment Lessee will have no right, title, or interest in or to the Equipment, except the right to quiet use of the Equipment in the ordinary course of its business as provided in this Lease. Equipment Lessee will execute such title documents, financing statements, fixture filings, certificates and such other instruments and documents as Company will reasonably request to ensure to Company's satisfaction the protection of Company's title to the Equipment and Company's interests and benefits under this Lease. Equipment Lessee will not transfer, pledge, lease, sell, hypothecate, mortgage, assign or in any other way encumber or dispose of any of the Equipment. THE PARTIES AGREE. AND EQUIPMENT LESSEE WARRANTS, THAT THE EQUIPMENT IS, AND WILL AT ALL TIMES REMAIN, PERSONAL PROPERTY OF COMPANY NOTWITHSTANDING THAT THE EQUIPMENT OR ANY PART THEREOF MAY NOW BE, OR HEREAFTER BECOME, IN ANY MANNER AFFIXED OR ATTACHED TO, OR EMBEDDED IN, OR PERMANENTLY RESTING UPON, REAL PROPERTY OR IMPROVEMENTS ON REAL PROPERTY. Equipment Lessee will not make any alterations, additions, or improvements to the Equipment without the prior written consent of Company. All parts added to the Equipment through alterations, repairs, additions or improvements will constitute accessions to, and will be considered an item of the Equipment and title to such will immediately vest in Company. Equipment Lessee agrees that Company may transfer or assign all or any part of Company's right, title and interest in or to any Equipment (in whole or in part) and this Lease, and any amounts due or to become due, to any third party ("Assignee") for any reason. Upon receipt of written notice from Company of such assignment, Equipment Lessee will perform all its obligations with respect to any such Equipment or the benefit of the applicable Assignee and, if so di
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the title to the equipment remains with the company, and the Equipment Lessee only has the right to use the equipment in their ordinary business operations. The Equipment Lessee must execute title documents, financing statements, fixture filings, certificates, and other instruments that the company reasonably requests. This ensures the protection of the company's title to the equipment and its interests under the lease agreement.
This means that as an Atwell Suites franchisee, you will not own the equipment but have the right to use it for your hotel's operations. You are obligated to sign any documents necessary to protect the company's ownership of the equipment. This is a fairly standard practice in franchising, where the franchisor often retains ownership of key assets while granting the franchisee the right to use them.
Furthermore, the Equipment Lessee is prohibited from transferring, pledging, leasing, selling, or otherwise encumbering the equipment. The equipment is considered personal property of the company, regardless of whether it is attached to real property. Any alterations or additions to the equipment become the property of the company. Atwell Suites has the right to transfer or assign its rights to the equipment and the lease to a third party, and the Equipment Lessee must then fulfill its obligations to that third party.